Business leaders including British Airways boss Willie Walsh; Nick Varney, chief executive of the Madame Tussauds owner Merlin Entertainments; and Grant Hearn, Travelodge chief, have warned that Britain is missing out on China’s high consumer spending power as wealthy tourists vote with their feet and go elsewhere on holiday to avoid UK visa red tape.

At present, a Chinese citizen wishing to visit the UK has to fill in a nine-page form in English, visit an immigration authority and have fingerprints taken. In a further bureaucratic hurdle, Chinese tourists coming to Britain are asked to pay £80, around £20 more on average, than when entering the so-called Schengen area of countries in Europe, which includes popular destinations like France, Italy and Spain.

Business leaders called on the Government to relax visa rules. Mr Walsh said: “To kick-start our economy, we must be able to trade effectively with the world’s powerhouses and the current visa process hinders Chinese businesses’ ability to work effectively in the UK. It also stops Chinese tourists, who have money to spend and love our high-profile brands, from filling the cash tills in our high streets and attractions.”

Elsewhere, Ben Elliot, co-founder of Quintessentially Lifestyle, a private members’ club with a 24-hour concierge service, which employs Mandarin speakers in London, said: “The Chinese have a huge appetite to want to spend money here but because of Victorian bureaucracy they can’t get in. We’ve spoken to a lot of Chinese people who revere and respect the UK but feel they are being treated like criminals by the authorities.”

He added that, following the success of the London 2012 Olympics and Diamond Jubilee, Whitehall should capitalise on tourism. “The Home Office has the view that these people are coming to London and are going to go to China Town and disappear. Post-Olympics, the Chinese are looking to spend money and time in this country but we’re losing businesses because of the one-size-fits-all visa system. It’s monstrously irritating.”

For every one Chinese tourist who visits Britain, 10 visit America, figures show. China has a total population of 1.3bn, but in 2011, just 149,000 citizens visited Britain, spending £240m. By contrast, America attracted 1.1m visits in the same year, according to UK tourism body VisitBritain.

The typical Chinese visitor spends £1,600 while in the UK, almost three times the average, VisitBritain said.

In December, the Home Office announced some changes intended to simplify the system, including that application forms will be in Chinese from April, but businesses say it isn’t enough.

Mr Varney said: “The Government thinks it’s job done but they’ve scraped 5pc of the surface of the problems.

“The £10bn spent on the outstanding success of the Olympics will be wasted unless we can do something about the barriers to people coming to the UK.”

Mr Walsh agreed the Government’s “small steps” should turn into “giant leaps” if the UK is to benefit from China’s economic might and spending power.

Mr Hearn said: “Every wealthy Indian or Chinese tourist lost to America, France and Germany is a lost opportunity to boost our economy and create much needed jobs in the UK. It’s that simple.”

A Home Office spokesperson said: "The Home Office takes the growth agenda very seriously and we are committed to building on the considerable progress we have made in making sure the brightest and best people come to our country. The visa service for China is already working well - 97pc of visas are processed within 15 days.

"Last year, the number of visas issued to Chinese nationals was up by 7% and in December we announced we are making it easier for Chinese visitors to come here. We are simplifying documentation requirements, establishing a new business network across China, extending our express visa service, and introducing a new passport pass-back scheme for visa applicants.

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